The decentralized social network Friend.tech, which initially gained traction for its revenue generation and user growth, has experienced a rapid decline in user activity, fees, and transaction volume shortly after its launch. The platform’s sudden downturn has led experts to label it as “dead,” highlighting the challenges of maintaining user engagement and sustainability in the decentralized space.
Friend.tech’s Initial Surge and Decline
Friend.tech, a decentralized social network, recently underwent a stark transformation from an initial surge in popularity to being deemed “dead” by experts. The platform garnered attention for its unique approach, allowing users to buy and sell “keys” to send private messages to each other, with the platform taking a 5% cut.
Promising Launch and Subsequent Decline
Upon its launch on Coinbase’s layer-2 Base on August 11, Friend.tech appeared to be off to a promising start. Just a week later, the platform’s fees surpassed $1 million in a 24-hour period, outperforming notable platforms like Uniswap and the Bitcoin network.
Dramatic Metrics Drop
However, Friend.tech’s success was short-lived. Key metrics such as user activity, inflows, and transaction volume experienced a rapid decline. According to DefiLlama data, the platform’s earnings saw a significant decrease of over 70% in fees by the end of the week, and the daily number of added users plummeted by 80%.
Substantial Fee and Transaction Reduction
In terms of fees, Friend.tech saw a dramatic decrease from a peak of approximately $1.7 million on August 21 to a value of around $215,000, marking an 87% decline in just a short period.
Shift in Ranking and User Engagement
Friend.tech, which initially ranked second to Ethereum in fee generation and revenue within the decentralized finance (DeFi) sector, has now dropped to the tenth position. This decline was accompanied by a substantial reduction in transaction activity, with the number of transactions decreasing by over 90% from around 525,000 on August 21 to approximately 51,000 on August 27.
Impact on User Engagement and Sustainability
The sudden downturn in Friend.tech’s metrics raises questions about the platform’s model and its ability to sustain user engagement. Despite its initial attraction and notable users from various domains, including sports, business, and social media, the platform’s decline has led experts to categorize it as “dead.”
This situation serves as a reminder of the challenges that decentralized platforms face in maintaining user engagement and sustainable growth in a rapidly evolving landscape.